In 2026, conditionality under the Common Agricultural Policy must be treated as an economic factor that can directly reduce cash flow from payments. The legal framework is established by Regulation (EU) 2021/2115, and the baseline standards include soil protection through minimum soil cover (GAEC 6), crop rotation on arable land (GAEC 7), and the maintenance of non-productive areas and landscape features (GAEC 8).

Non-compliance translates into reductions in financial support, affecting farms’ working capital precisely during periods of peak input consumption. Eurostat data show that in the second quarter of 2025, agricultural output prices increased by 5.6% year on year, while agricultural input prices rose by only 0.4%. This gap between output and input prices does not eliminate the risk of penalties but shifts it directly into margins and cash flow.

The implementation of GAEC 6–8 generates both direct and indirect costs: production losses on non-productive areas, the reorganization of crop rotations, and additional administrative expenses. In the absence of strict alignment between the technological plan and GAEC requirements, discrepancies between declared data and on-the-ground conditions remain the primary source of penalties.

For 2026, managing conditionality becomes an economic exercise. Farms that correctly budget the cost of compliance and integrate it into technological decision-making will gain a competitive advantage within an increasingly restrictive framework.

(Photo: Freepik)